Good day traders! On the 19th of March, I wrote that a corrective phase in GBP/JPY might start. As things stand now, price did move higher and we might be seeing the final phase of my proposed correction underway.
I’m still considering this bounce as a 4th wave correction with a 5th wave lower to follow afterward. We might be seeing the C-wave of this correction unfolding as an ending diagonal, which could still extend towards the 136.70 – 138.20 price zone before resistance sets in and turns price lower.
Should GBP/JPY eventually turn lower and resume its downwards trend, then price could target the 130.93 level and possibly extend lower towards the 18th of March low at 124.02.
More updates to follow.
Bias: Bearish when correction ends
Potential resistance zone: 136.70 – 138.20
Potential targets: 130.93 and 124.02
Until next time, have a great day and stay safe!